Question

Data Table Press Exercise Equipment, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 717,000 340,000 377,000 Cost of Goods Sold Gross Profit Operating Expenses: Depreciation Expense $ 46,000 180,000 Other Operating Expenses Total Operating Expenses 226,000 $ 151,000 Net Income

Answer 1

$ 151,000 Press Exercise Equipment, Inc. Statement of Cash Flows Year Ended December 31,2018 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Increase in Accounts receivables Decrease in Merchandise Inventories Increase in Accounts payable Decrease in salaries payable Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities Cash paid for purchase of Equipment Cash paid for purchase of Investment Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities Cash paid for dividends Cash paid to repayment of note payable Cash received from sale of common stock Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease in cash Cash Balance, December 31, 2017 Cash Balance, December 31, 2018 3,900 (7,000) 3,000 3,000 (4,000) $ (1,100) $ 149,900 $ $ (52,900) (16,000) $ (68,900) $ $ $ (74,000) (13,000) 10,000 $ (77,000)| $ 4,000 $ 14,000 $ 18,000

Working Notes: Cash paid for dividends Opening balance of Retained earnings Add: Net Income $ $ $ $ $ 218,500 151,000 369,500 295,500 74,000 Less: Closing balance of Retained earnings Cash paid for dividends Depreciation Expenses Closing balance of accumulated Depreciation - Plant assets Less: Opening balance of accumulated Depreciation - Plant assets Depreciation Expenses $ $ $ 40,500 36,600 3,900